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Workers’ Compensation Insurance Requirements in North Dakota
North Dakota is a monopolistic state fund state — every employer registers directly with Workforce Safety & Insurance, not a private carrier — and Trade Safe helps contractors get registered right the first time.
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Workers’ Compensation Insurance Requirements in North Dakota
North Dakota doesn’t work like the other 48 competitive-market states. There’s no shopping for quotes from multiple carriers — every employer with even one employee must register directly with Workforce Safety & Insurance (WSI), the state’s exclusive fund. For contractors, especially those bringing crews in from out of state, understanding that this is a registration process rather than an insurance-shopping process is the first step to staying compliant.
North Dakota Workers’ Compensation Legal Requirements
North Dakota law requires WSI coverage from the first employee — full-time, part-time, seasonal, or occasional — with employers required to register before that employee begins work.
- Coverage required from employee #1 — there is no minimum-headcount exemption
- Sole proprietors and partners may generally exempt themselves from personal coverage, but must still cover any employees
- Out-of-state contractors bringing crews into North Dakota must register with WSI and secure ND-specific coverage before work begins — an existing home-state policy does not transfer
- ND contractor licensing (Secretary of State) for jobs over $4,000 requires a WSI certificate of payment or letter of good standing
How North Dakota’s Workers’ Comp System Works
System type: Monopolistic State Fund
North Dakota is one of a handful of monopolistic state fund states — coverage can only be purchased through Workforce Safety & Insurance, the state-run fund, with no private carrier option and no qualified self-insurance alternative. That means the buying experience is fundamentally different here: contractors register and pay premium directly to WSI rather than comparing quotes across insurers. On the Oregon DCBS index, North Dakota ranks 51st of 51 nationally with an index rate of 0.50 (45% of the national median) — the lowest overall workers’ comp cost in the country. Trade Safe still plays a critical role for North Dakota contractors: getting WSI registration set up correctly, documentation in order for licensing and out-of-state jobs, and coverage gaps closed — even though the premium itself isn’t shopped on the open market.
How North Dakota’s Rates Compare by Trade
| Trade (NCCI Class Code) | National Rank (of 51) | Rate per $100 of Payroll |
|---|---|---|
| Roofing (Class 5551) | 51st of 51 | $1.18 |
| Electrical Wiring (Class 5190) | 50th of 51 | $0.99 |
| Plumbing NOC (Class 5183) | 50th of 51 | $1.15 |
Source: Oregon Dept. of Consumer and Business Services, 2024 Workers’ Compensation Premium Rate Ranking Study (published June 2025) — the only study benchmarking all 50 states plus DC on a common industry mix.
Filing a Workers’ Comp Claim in North Dakota
Claims are administered entirely by Workforce Safety & Insurance (WSI). An injured worker should report the injury to their employer as soon as possible, ideally within 24 hours, and the employer must file a First Report of Injury (FROI) with WSI within 7 days of notice. WSI typically assigns a claim number within 24 hours of receiving the FROI, then an adjuster reviews the claim and issues an accept or deny decision to both the worker and employer.
Penalties for Non-Compliance
WSI can issue a Cease and Desist Order against an uninsured employer, along with a flat $10,000 penalty plus $100 for each day the violation continues; uninsured employers also remain personally liable for the full cost of any claim incurred while uninsured and lose the exclusive-remedy protection, meaning an injured employee can sue them directly.
Resources: Workforce Safety & Insurance – Coverage Requirements, WSI – Failure to Secure Coverage, WSI – Out-of-State Employers Working in North Dakota
How Much Does Workers’ Comp Insurance Cost in North Dakota?
Because coverage is purchased through WSI rather than shopped across private carriers, North Dakota’s rates are set by the state fund rather than competitive market pricing — and they come in as the lowest-cost state in the country across the trades tracked here.
| Trade | Estimated Cost per $100 Payroll | What Drives It |
|---|---|---|
| Roofing | $1.18 (per the Oregon study’s Class 5551 rate) | Ranks last nationally, reflecting North Dakota’s overall low-cost fund structure |
| Electrical | $0.99 (per the Oregon study’s Class 5190 rate) | Ranks near-last nationally for the same reason |
| Plumbing | $1.15 (per the Oregon study’s Class 5183 rate) | Ranks near-last nationally for the same reason |
What Moves the Price Up or Down
- WSI premium rates set by the state fund rather than competitive private-market pricing
- Your business’s payroll reported to WSI at registration and renewal
- Claims history, which affects your WSI experience rating over time
- Whether out-of-state crews are properly registered for ND-specific jobs, since gaps here can trigger separate penalties
Rates cited above come from the Oregon DCBS 2024 Workers’ Compensation Premium Rate Ranking Study and represent national benchmark averages by class code, not a quote. Because North Dakota coverage is purchased through WSI rather than shopped across carriers, your actual cost depends on your WSI experience rating and reported payroll — talk to Trade Safe about getting your WSI registration and documentation in order.
Frequently Asked Questions
Can a North Dakota contractor buy workers’ comp from a private insurance company?
No. North Dakota is a monopolistic state fund state — all coverage must be purchased through Workforce Safety & Insurance (WSI); there is no private carrier or self-insurance option.
Does my out-of-state workers’ comp policy cover my crew on a North Dakota job?
No. Out-of-state contractors must register with WSI and obtain North Dakota-specific coverage before work begins; a home-state policy does not transfer or satisfy ND law.
What happens if a North Dakota employer doesn’t register with WSI?
WSI can issue a Cease and Desist Order, impose a $10,000 penalty plus $100 per day of continued violation, and hold the employer personally liable for the full cost of any claim incurred while uninsured.
Do I need WSI coverage if I only have one part-time employee in North Dakota?
Yes. North Dakota requires WSI coverage from the first employee, regardless of full-time, part-time, seasonal, or occasional status.
Workers’ compensation requirements change; verify current rules with Workforce Safety & Insurance before making coverage decisions.
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